The Bank of England have raised the base rate of interest again today by 0.25% to 5.25%


This latest increase has been widely expected and should not lead to any significant changes to new mortgage deals currently available. In fact, many lenders have reduced their fixed rate deals over the last couple of weeks. One of the country’s largest mortgage lenders, Santander, have announced they are reducing their fixed rates by up to 0.39% tomorrow. I have talked before about how the mortgage market looks at many factors when calculating the rates on offer and the Bank of England base rate isn’t a direct a direct influence, this is because lenders look at longer term predictions for interest rates so any expected changes, such as today, tend to already be accounted for.

For existing mortgage holders, if your mortgage is currently on a variable rate then there will be a change in the rate you pay, and therefore your payments will increase. Your lender will write to you in the coming days to advise of what that change will be.

As always, my award-winning team at Barlow Irvin Financial Services are on hand to answer any questions you have, so please don’t hesitate to get in touch.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. 

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The Barlow Irvin Team

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